Of the Fortune 500 companies, 60% use at least three Microsoft cloud services.

Microsoft competes against Amazon Cloud Services which is expected to earn $10 billion in revenue this year. It also competes against Alphabet, Oracle and IBM.

This year, cloud services will generate $96 billion in revenue, according to IDC. By 2020, that is projected to increase to $200 billion, a 20% increase.

Cloud services are divided into three categories: software as a service (SAAS) and platform as a service (PAAS), which comprise 83% of revenue, and infrastructure as a service (IaaS), which accounts for the remaining 17%.

IaaS is forecasted to grow significantly by 2020.

Subscription Growth

Meanwhile, Microsoft Office 360 subscribers increased to 24 million as customer sales grew 8%. Commercial sales grew 51%, reaching 85 million monthly users. This is 40% higher than the first quarter of 2015.

Microsoft 360 currently has 109 million subscribers.

The company’s productivity and business processes segment, reached $6.7 billion, growing 6% and accounting for nearly a third of revenue during the first quarter.